Weak iPhone Demand Could Lead To Apple's Largest Q3 Revenue Drop Since 2016

iPhone sales are slowing down in the US and South America and flat in China as people wait for the iPhone 15 series to launch in September this year. This could lead to the largest Q3 (September quarter) revenue drop for Apple Inc. AAPL since 2016.

What Happened: A combination of a weak economy and people holding back their purchases for the iPhone 15 series could lead to the largest fall in September quarter revenue for Apple since 2016, reported Reuters.

See Also: iPhone 15 vs iPhone 14: 6 Changes That Will Make The iPhone 15 A Notable Upgrade

The September quarter is crucial for Apple since it has traditionally launched new iPhones in September, with some exceptions like the iPhone 12 and iPhone SE series.

This usually leads to people waiting for the new iPhone every year in the September quarter. However, this year is expected to be worse, with inflation weighing heavily on people's buying decisions. Deloitte's financial well-being index edged lower in June, reflecting the somber mood.

Most of the decline in Apple's topline in the September quarter is expected to come from the Americas – the region is expected to see a 6% revenue decline.

More specifically, iPhone revenue is expected to decline by 2% overall compared to a 3% increase last year and a 1.5% increase in the previous quarter.

iPhone 15 Series – Here's What To Look Out For

The iPhone 15 series is expected to feature some important hardware and design upgrades. However, Apple is also reportedly planning to hike the iPhone 15 Pro and Pro Max prices by $100 each.

Here's what we know about the iPhone 15 series so far:

Titanium Body: Apple could borrow the titanium body design from the Apple Watch Ultra and use it on the iPhone 15 Pro and Pro Max, complete with a brushed finish.

USB Type-C Port: Apple is reportedly planning to switch the much-anticipated USB Type-C port with the iPhone 15 series. While this is in response to European Union regulation, it will make it easier to find a charger since most other smartphones sold over the last few years have the same port. 

Stacked Battery Technology: Apple is said to use stacked battery technology borrowed from electric vehicles. This will help Apple maintain the same size as the iPhone 14 models while increasing battery capacity by up to 20%.

Periscope Camera: Apple is rumored to include a periscope camera in its flagship, significantly improving its zooming capabilities.

Programmable Action Button: Apple is expected to replace the iconic mute switch with a programmable Action button in the iPhone 15 series. Users will be able to program the button for nine actions, including flashlight, ring/silent or do not disturb modes, low power mode, and more.

Dynamic Island On All iPhone 15 Models: After debuting Dynamic Island on the ‘Pro' models, Apple is now expected to bring it to the non-Pro models as well.

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